Kathmandu. For CG Corp Global, a subsidiary of Chaudhary Group that has moved its global headquarters to Dubai, tensions in the Middle East are likely to affect its business strategy.
CG’s decision to shift its headquarters from Singapore to Dubai as its main base has been seen as meaningful, especially in the wake of the ongoing war in Gaza and Lebanon and the regional instability it has caused.
CG Corp Global Pvt. Ltd. has started construction of its luxury JW Marriott Residences on the island of Dubai under CG Hospitality. The total estimated cost of the project is around 700 million dirhams. The project represents CG’s strategy to strengthen its presence in the Middle East.
Despite the shadow of war in the Middle East, Rahul Chaudhary, managing director of CG Corp Global, defined Dubai as a {{TAG_CLOSE_a_14 TAG_OPEN_a_14}}safe haven at the inauguration of the Dubai headquarters. According to his analysis, when there is unrest in other countries in the Middle East, investors from all over the world are attracted to Dubai in search of safe investments.
This is expected to increase the demand for CG’s real estate projects. CG sees this as a long-term advantage as Dubai is easier to connect to Europe, Africa and India than in Singapore.
However, if the war prolongs, there will be disruptions in transportation routes and the cost of construction materials will increase. Moreover, Iran continues to attack US military bases in the Gulf, as well as sensitive infrastructure such as refineries and airports, making it difficult to predict the situation until the war stops.
The current situation raises the possibility that the presence of US troops, and the negative attitude of the US government in particular towards the Muslim-led government, could again target another country in the Gulf and Middle East after Iran. The direct impact of which will be felt in Gulf countries like Dubai, Qatar, Bahrain, where US military bases are already permanent.
CG has stepped up its billions of investments, confident that Dubai’s economy remains resilient despite regional tensions. Whether this move will strengthen CG on the global stage or have an impact on the remnants of war will be telling.
